VIETNAM PEPPER INDUSTRY
Pepper is the most popular spice in the world today, is a high-class spice, accounting for a leading role (about 34%) of the total value of spice production traded in the world. The demand for pepper in the world is increasing, making the trade on pepper also exciting. World pepper prices fluctuated based on price fluctuations in major pepper exporting countries such as Vietnam, Brazil, Indonesia and India.The pepper industry is one of the agriculture sectors that has made an important contribution to the entire agricultural sector of Vietnam. The area of ​​pepper in Vietnam has continuously increased sharply from 2012 to 2018 with a CAGR of 20.24% annual growth rate because the sharp increase of pepper prices in the period of 2012-2015 has made farmers in the regions. Growing pepper continuously expands new crop areas. Vietnam’s pepper output has grown steadily with an estimated CAGR of 12.1% during 2012-2018 and accounts for 40% of global pepper production, of which black pepper accounts for major proportion with 89% of total production.
In the third quarter of 2019, pepper export volume of all types of pepper was estimated to increase over the same period in 2018. Total export turnover decreased compared to the third quarter of 2018. Although Vietnam’s pepper export output has continuously increased over the years and become the largest pepper exporter in the world, Vietnam’s pepper exports in 2019 are forecast to be difficult. when supply is exceeding demand.
The average export price of pepper in Vietnam increased sharply in the period from 2012 to 2015, then plummeted continuously from the end of 2015 to the present. Generally in the first 9 months of 2019, the export price of pepper decreased compared to the same period last year, resulting in a decline in sales of many enterprises in 2018.